Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Everything you need to know before buying real estate is included in our Malaysia Property Pack
If you're wondering where Malaysia's property market stands right now, you're in the right place.
We've put together the latest data on housing prices in Malaysia, covering current trends, recent changes, and what experts expect for the coming years.
This article is updated regularly to reflect the most recent market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Malaysia.
Insights
- Malaysia's national average house price sits at around RM495,000 in January 2026, which means prices have barely moved over the past 12 months despite a growing economy.
- High-rise condos in parts of Kuala Lumpur are actually declining in value while landed homes in the same city continue to hold steady or rise, showing how location and property type create completely different investment outcomes.
- The RTS Link connecting Johor Bahru to Singapore in late 2026 has already pushed property prices near Bukit Chagar station up by 18% over two years, well before operations begin.
- Malaysia's unemployment rate hit a 10-year low of 3% in late 2025, which supports housing demand by keeping household incomes stable across the country.
- Budget 2026 doubled financing guarantees for first-time buyers to RM20 billion, making it easier for younger Malaysians to enter the housing market despite affordability challenges.
- Serviced apartments near the upcoming RTS Link in Johor now command rental rates of RM2,000 to RM2,300 per month for studio units, nearly double what similar units fetched just two years ago.
- The LRT Shah Alam Line, expected to open in 2026 after multiple delays, will finally connect over two million residents in the western Klang Valley to the broader transit network.
- Foreign buyers now account for over 40% of property transactions in Johor Bahru, driven primarily by Singaporeans attracted to prices that are a fraction of what they pay at home.
What are the current property price trends in Malaysia as of 2026?
What is the average house price in Malaysia as of 2026?
As of early 2026, the average house price in Malaysia is approximately RM495,000, which is about $110,000 USD or €101,000 EUR, making Malaysia one of the more affordable housing markets in Southeast Asia.
To put that into perspective on a per-area basis, the average price per square meter for residential property in Malaysia is around RM4,900, equivalent to roughly $1,090 USD or €1,000 EUR per square meter.
Most property purchases in Malaysia fall within a realistic range of RM300,000 to RM800,000 (about $67,000 to $178,000 USD, or €61,000 to €163,000 EUR), which covers roughly 80% of transactions across the country, though prices vary significantly between Kuala Lumpur's prime areas and secondary cities.
How much have property prices increased in Malaysia over the past 12 months?
Over the past 12 months leading into January 2026, property prices in Malaysia have increased by approximately 1% on a national level, which means the market has been essentially flat when you account for inflation.
Across different property types in Malaysia, the range of price changes has varied from slight declines of around 2% in oversupplied high-rise segments to gains of about 3% to 4% in well-located landed homes, showing that broad averages hide significant local differences.
The single most significant factor behind this muted price movement has been the combination of affordability constraints and high loan rejection rates, which have kept buyer demand from pushing prices higher despite stable economic fundamentals in Malaysia.
Which neighborhoods have the fastest rising property prices in Malaysia as of 2026?
As of early 2026, the neighborhoods with the fastest rising property prices in Malaysia include Mont Kiara and Bangsar in Kuala Lumpur, along with Bukit Chagar in Johor Bahru, which is benefiting from its proximity to the upcoming RTS Link to Singapore.
Mont Kiara has seen annual price growth of around 5% to 7%, Bangsar has recorded gains of approximately 4% to 6%, and Bukit Chagar in Johor has experienced price increases of 8% to 10% driven by infrastructure-led demand.
The main demand driver behind these neighborhoods' strong performance is a combination of limited land supply in mature areas, strong expatriate and professional buyer pools, and improved transport connectivity that makes these locations more accessible than ever.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Malaysia.
We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Malaysia as of 2026?
As of early 2026, the ranking of property types by value appreciation in Malaysia places landed homes at the top, with terraced houses and semi-detached homes outperforming high-rise condominiums and serviced apartments, which have struggled in oversupplied markets.
Semi-detached houses in prime suburban areas of Malaysia have appreciated by approximately 4% to 6% annually, driven by strong demand from upgrading families who value space and privacy over high-rise living.
The main reason landed properties are outperforming in Malaysia is that land is a finite resource in established neighborhoods, while high-rise developers can continue building vertically, creating competition and oversupply that caps price growth for apartments and condos.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Malaysia?
- How much should you pay for a house in Malaysia?
- How much should you pay for lands in Malaysia?
What is driving property prices up or down in Malaysia as of 2026?
As of early 2026, the top three factors driving property prices in Malaysia are stable economic growth supporting household incomes, government policy support for first-time buyers, and infrastructure projects reshaping accessibility in key corridors.
The single factor with the strongest upward pressure on Malaysia's property prices is the ongoing delivery of major rail infrastructure, including the RTS Link in Johor and the LRT Shah Alam Line, which is creating localized price premiums in connected neighborhoods.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Malaysia here.
Get fresh and reliable information about the market in Malaysia
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What is the property price forecast for Malaysia in 2026?
How much are property prices expected to increase in Malaysia in 2026?
As of early 2026, property prices in Malaysia are expected to increase by approximately 2% over the full year, representing a modest improvement from the nearly flat growth seen in 2025.
The realistic range of forecasts from different analysts for Malaysia's 2026 property price growth spans from 0% in a downside scenario to around 4% in an optimistic case where interest rates ease and consumer confidence strengthens.
The main assumption underlying most price increase forecasts for Malaysia is that the country's GDP will grow in the 4% to 4.5% range, keeping employment stable and household incomes growing fast enough to support modest housing demand without overheating.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Malaysia.
Which neighborhoods will see the highest price growth in Malaysia in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Malaysia include Iskandar Puteri and Bukit Chagar in Johor, Mont Kiara and Bangsar in Kuala Lumpur, and Tanjung Tokong in Penang.
These top neighborhoods in Malaysia are projected to see price growth of 5% to 10% in 2026, well above the national average, driven by infrastructure completion and sustained buyer interest from both locals and foreigners.
The primary catalyst driving expected growth in these neighborhoods is the imminent completion of the RTS Link in Johor and the LRT Shah Alam Line in the Klang Valley, which will significantly improve commute times and unlock new buyer demand.
One emerging neighborhood in Malaysia that could surprise with higher-than-expected growth is Shah Alam, particularly areas near the new LRT3 stations, where prices have remained relatively affordable despite improving connectivity.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malaysia.
What property types will appreciate the most in Malaysia in 2026?
As of early 2026, the property type expected to appreciate the most in Malaysia is well-located terraced houses in established suburban areas, followed by semi-detached homes, while high-rise apartments face more mixed prospects.
Terraced houses in prime suburban corridors of Malaysia are projected to appreciate by 3% to 5% in 2026, outperforming the broader market due to consistent family demand and limited new supply in mature neighborhoods.
The main demand trend driving appreciation for landed homes in Malaysia is the post-pandemic preference for more living space, private gardens, and multi-generational arrangements that high-rise units simply cannot provide.
The property type expected to underperform in Malaysia in 2026 is mass-market serviced apartments in oversupplied corridors, where competition from new launches and weak rental demand will continue to pressure prices downward.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Malaysia in 2026?
As of early 2026, the current Overnight Policy Rate of 2.75% set by Bank Negara Malaysia is expected to keep mortgage costs stable, which supports housing demand but also limits how quickly prices can rise since buyers face real affordability constraints.
Malaysia's benchmark OPR was cut by 25 basis points in July 2025, the first reduction in five years, and most analysts expect rates to remain steady or see one additional small cut in 2026 if inflation stays contained.
A 1% change in interest rates typically affects property affordability in Malaysia by altering monthly mortgage payments by around RM200 to RM400 for a typical home loan, which can shift buyer budgets by RM50,000 to RM100,000 in purchasing power over the loan term.
You can also read our latest update about mortgage and interest rates in Malaysia.
What are the biggest risks for property prices in Malaysia in 2026?
As of early 2026, the top three biggest risks for property prices in Malaysia are a potential global trade shock affecting Malaysia's export-driven economy, persistent oversupply in certain high-rise segments, and the possibility of tighter lending standards if loan defaults rise.
The single risk with the highest probability of materializing in Malaysia is continued weakness in oversupplied high-rise corridors, where developers may be forced to offer deeper discounts and incentives to clear unsold inventory, dragging down prices in affected areas.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Malaysia.
Is it a good time to buy a rental property in Malaysia in 2026?
As of early 2026, it can be a good time to buy a rental property in Malaysia if you focus on rentable locations near transit, employment hubs, or universities, though returns will depend heavily on choosing the right property type and avoiding oversupplied segments.
The strongest argument in favor of buying now is that Malaysia's property prices are not running away from you, meaning you can take time to find quality deals without fearing that prices will spike dramatically while you search.
The strongest argument for waiting is that oversupply in certain high-rise segments may lead to even better deals later in 2026 as developers become more desperate to move unsold inventory before new launches add further competition.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Malaysia.
You'll also find a dedicated document about this specific question in our pack about real estate in Malaysia.
Buying real estate in Malaysia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Malaysia?
What is the 5-year property price forecast for Malaysia as of 2026?
As of early 2026, cumulative property price growth in Malaysia over the next 5 years is expected to reach approximately 18% in our baseline scenario, assuming continued economic stability and steady infrastructure delivery.
The range of 5-year forecasts for Malaysia spans from around 10% cumulative growth in a conservative scenario with slower economic expansion to roughly 28% in an optimistic case where multiple infrastructure projects boost buyer confidence significantly.
This translates to a projected average annual appreciation rate of approximately 3.3% per year over the next 5 years in Malaysia, which represents steady but unspectacular growth consistent with a maturing property market.
The key assumption most forecasters rely on for their 5-year property price predictions in Malaysia is that the country will maintain GDP growth in the 4% to 5% range without major external shocks, allowing household incomes to grow faster than home prices.
Which areas in Malaysia will have the best price growth over the next 5 years?
The top three areas in Malaysia expected to have the best price growth over the next 5 years are Iskandar Puteri in Johor, the western Klang Valley corridor served by the LRT Shah Alam Line, and Penang Island's constrained coastal zones.
These top-performing areas in Malaysia are projected to see 5-year cumulative price growth of 25% to 40%, significantly outperforming the national average due to infrastructure catalysts and structural land scarcity.
This differs from our shorter-term forecast because one-year predictions favor areas where infrastructure is completing immediately, while 5-year outlooks reward areas where the full impact of new connectivity will take time to materialize in buyer behavior and developer activity.
One currently undervalued area in Malaysia with the best potential for outperformance over 5 years is the Shah Alam to Klang corridor, where the LRT3 line will finally bring modern rail access to over two million residents who have long been underserved by public transit.
What property type will give the best return in Malaysia over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Malaysia is terraced houses in transit-connected suburbs, which combine steady capital appreciation with consistent rental demand from families.
The projected 5-year total return for well-located terraced houses in Malaysia is approximately 30% to 40%, combining around 18% to 25% capital appreciation with cumulative rental income that adds another 12% to 15% over the period.
The main structural trend favoring terraced houses over the next 5 years in Malaysia is the growing preference among young families for space and privacy, combined with the finite supply of landed plots in established neighborhoods near employment centers.
For investors seeking the best balance of return and lower risk over 5 years in Malaysia, semi-detached homes in mature suburban areas offer strong appreciation potential with even more scarcity value than terraced houses, though at higher entry prices.
How will new infrastructure projects affect property prices in Malaysia over 5 years?
The top three major infrastructure projects expected to impact property prices in Malaysia over the next 5 years are the Johor Bahru to Singapore RTS Link opening in late 2026, the East Coast Rail Link connecting to Gombak, and the LRT Shah Alam Line serving the western Klang Valley.
The typical price premium for properties near completed infrastructure projects in Malaysia ranges from 15% to 30% compared to similar properties without rail access, with the highest premiums concentrated within 800 meters of station entrances.
The specific neighborhoods that will benefit most from these infrastructure developments in Malaysia include Bukit Chagar and Iskandar Puteri in Johor, Shah Alam and Klang in Selangor, and areas along the ECRL corridor from Kuantan to the Klang Valley.
How will population growth and other factors impact property values in Malaysia in 5 years?
Malaysia's projected population growth rate of around 1% annually, combined with continued urbanization, is expected to support property values over the next 5 years by maintaining steady demand for housing in key metropolitan areas.
The demographic shift that will have the strongest influence on property demand in Malaysia is the aging of the population, which will increase demand for smaller, more accessible units in well-serviced locations while reducing demand for large family homes in car-dependent suburbs.
Migration patterns, including continued rural-to-urban movement within Malaysia and foreign buyer interest from Singapore and China, are expected to concentrate demand in Greater Kuala Lumpur, Johor, and Penang, pushing prices higher in these regions relative to secondary cities.
The property types and areas that will benefit most from these demographic trends in Malaysia are condominiums and terraced homes in transit-connected urban cores, particularly those offering family-friendly amenities and easy access to healthcare and schools.
We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Malaysia?
What is the 10-year property price prediction for Malaysia as of 2026?
As of early 2026, cumulative property price growth in Malaysia over the next 10 years is expected to reach approximately 45% in our baseline scenario, assuming the country maintains steady economic development without major disruptions.
The range of 10-year forecasts for Malaysia spans from around 25% cumulative growth in a conservative scenario to roughly 70% in an optimistic case where infrastructure investment accelerates and Malaysia successfully attracts sustained foreign investment.
This translates to a projected average annual appreciation rate of approximately 3.8% per year over the next 10 years in Malaysia, which is consistent with historical long-term trends in mature Southeast Asian property markets.
The biggest uncertainty factor in making 10-year property price predictions for Malaysia is the trajectory of global trade and manufacturing, since Malaysia's economy remains heavily dependent on exports and any major shifts in supply chains could significantly alter the housing demand outlook.
What long-term economic factors will shape property prices in Malaysia?
The top three long-term economic factors that will shape property prices in Malaysia over the next decade are sustained GDP and wage growth, the evolution of credit conditions and mortgage accessibility, and the country's success in attracting foreign direct investment in high-value sectors.
The single long-term economic factor that will have the most positive impact on property values in Malaysia is continued infrastructure investment, which will improve connectivity, create jobs, and unlock previously inaccessible land for development while boosting values in connected areas.
The single long-term economic factor that poses the greatest structural risk to property values in Malaysia is the potential for persistent oversupply in certain segments, particularly if developers continue launching high-rise projects faster than household formation and income growth can absorb them.
You'll also find a much more detailed analysis in our pack about real estate in Malaysia.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Malaysia, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| NAPIC (JPPH Malaysia) | Official government property data agency that publishes the Malaysian House Price Index. | We used NAPIC as our primary source for national and state-level price trends, average prices, and segment breakdowns. We also relied on their Property Market Snapshot for supply and transaction data. |
| BIS via FRED | Republishes Bank for International Settlements residential price data in a standardized format. | We used this to cross-check Malaysia's price direction against an international benchmark. We also used it to ensure our national trend estimates were consistent with global standards. |
| Bank Negara Malaysia | Malaysia's central bank that sets monetary policy and publishes official interest rate decisions. | We used BNM's MPC statements to anchor our interest rate analysis. We also used their data to frame how mortgage costs affect housing affordability. |
| Reuters | Highly trusted global news agency that accurately reports central bank decisions. | We used Reuters to corroborate BNM policy rate decisions and economic context. We also used their coverage to validate timing and rationale of monetary policy changes. |
| DOSM | Malaysia's official statistics agency publishing authoritative demographic data. | We used DOSM's population projections to ground our long-term demand analysis. We also used their data to identify which regions have structurally stronger housing demand. |
| World Bank | International institution providing consistent economic forecasts and regional analysis. | We used World Bank growth assumptions to triangulate our 2026 outlook. We also used their data to stress-test forecasts under different global scenarios. |
| IMF | The IMF's World Economic Outlook is a flagship forecast used globally for baseline scenarios. | We used IMF data to anchor Malaysia's GDP growth baseline for our price forecasts. We also used their scenarios to build our upside and downside cases. |
| Kenanga Research | Major Malaysian financial institution providing locally-focused economic analysis. | We used Kenanga's outlook to cross-check local growth and rate expectations. We also used their insights to translate macro conditions into housing demand implications. |
| Brickz | Well-known Malaysian transaction database showing actual sale prices, not asking prices. | We used Brickz to approximate price per square foot and identify neighborhood-level trends. We also used their data to validate official average prices against market transactions. |
| JLL | Major global real estate consultancy with transparent market commentary. | We used JLL's Greater Kuala Lumpur Residential report to contextualize demand drivers. We also used their analysis to support our submarket selection methodology. |
| KPMG Malaysia | Top-tier professional services firm providing compliance-level policy analysis. | We used KPMG's Budget 2026 summary to anchor housing policy changes. We also used their analysis to translate policy into likely price impacts by segment. |
| PwC Malaysia | Top-tier professional services firm offering structured government policy summaries. | We used PwC's Budget 2026 highlights to cross-check policy items. We also used their analysis to identify second-order effects on the property market. |
| ECRL Official Website | Official project source for the East Coast Rail Link timeline and updates. | We used ECRL project information to anchor our infrastructure impact analysis. We also used their completion timeline to frame 5-year price growth expectations. |
| LTA Singapore | Singapore's official land transport authority providing RTS Link project updates. | We used LTA's RTS Link information to validate cross-border infrastructure timelines. We also used their data to support our Johor property market analysis. |
| LRT3 Official Website | Official project source for the LRT Shah Alam Line status and station information. | We used LRT3 project details to identify western Klang Valley growth corridors. We also used their timeline to frame infrastructure-driven price expectations. |
| IQI Global | Major property consultancy with extensive Malaysia market research and data. | We used IQI Global's market insights to validate rental trends and buyer patterns. We also used their analysis to support our foreign buyer demand estimates. |
| Global Property Guide | International property research platform providing standardized yield and price data. | We used Global Property Guide for rental yield benchmarks across Malaysia. We also used their data to calculate total return projections for different property types. |
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If you want to go deeper, you can read the following: